With countries becoming closer as a result of the upgraded technology, ample information, and corporate globalization becoming more of a common trend, one cannot dismiss the fact that many countries still have different cultural ideas when it comes to business practice. When examining the topic of Money and Banking, our global diversity becomes evident when comparing the banking practices of the Western World with that of Islamic financial practice. With 1.3 billion practicing Muslims in the world, and with the philosophy of Islam incorporating into Muslim culture, anyone that plans to be a Global Player in the Business world should be somewhat knowledgeable of the fundamental that Islamic Financial Institutions practice and the premise behind their beliefs. .
When comparing the two styles of banking, there are two main differences between Islamic Banking practices and the banking practices of the West. One is that the Qur"an, the Islamic book of faith, stringently prohibits from receiving riba, or as westerners know it as maybe the foundation of their banking system, interest. Interest cannot be given or charged to businesses, individuals, or even other banks. The believed reason is that money itself really has no true value; it's only purchasing power, a means of exchange. According to the religion, it does not make sense that something that doesn't have real value should give rise to more of the same thing. Islam teaches the idea that investments should benefit the community. It's simply wrong to put money in a bank that earns interest with almost no risk causing devaluating and causing inflation by keeping money "idle" in their economy. Islamic financial philosophy implies that the higher the risk, the higher the return, the greater facilitation to the economy. With a perpetuated spark to the economy, entrepreneurs will be more willing to continue and promote their efforts toward their investment.
